Power bills likely to go down in Pakistan

Electricity rates are expected to go down by Rs1.75 per unit for consumers nationwide.

Electricity consumers across Pakistan may get relief as a new reduction in power tariffs is under consideration. The Central Power Purchasing Agency (CPPA) has submitted a request to NEPRA, proposing a cut in electricity prices under the monthly fuel cost adjustment for June 2025. NEPRA is scheduled to conduct a public hearing on the proposal.

According to the CPPA, over13.31 billion units of electricity were produced in June, at an average cost of Rs7.68 per unit. This is lower than the reference cost of Rs8.33 per unit, creating room for a decrease in electricity prices. A major factor behind this cost reduction is the high share of hydropower in electricity generation. In June, hydropower contributed 39 percent to the overall energy mix. Additionally, 20 percent of electricity was generated from local and imported coal, and 16 percent came from imported RLNG.

If approved, this reduction will offer some financial relief to millions of people already dealing with high living costs. In a related move, NEPRA recently approved a fuel cost adjustment that has already reduced electricity bills. K-Electric consumers have seen a drop of Rs4.03 per unit, while other regions received a minor relief of 5 paisas per unit. These adjustments are based on fuel charges for April and May 2025 and are being reflected in July bills.

The final decision regarding the latest June-based adjustment will be made after the upcoming hearing. If accepted, this cut could help lower inflation and ease the financial burden on households and businesses alike.